China land sales surged 70% last year

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Land sales in China rose by 70 percent in 2010, as the country’s land and resources minister warned of social unrest among Chinese buyers who were unable to acquire affordable homes.

Minister Xu Shaoshi said on the ministry's website that land transactions hit 2.7 trillion yuan (S$527 billion) last year, up from 1.59 trillion yuan in 2009.

“Urban development is becoming more dependent on land transactions, which has triggered an uneven allocation of benefits — and social conflicts,” he said, noting that China may introduce further property measures to curb the market.

China has already tightened limits on mortgage lending to dampen investment buying that drive home prices up. China said in September that it would introduce a property tax trial in some major cities.

According to China Real Estate Information Corp, property values in Beijing increased 42 percent last year and prices of apartments in some cities rose to record highs.

Mr. Xu stressed that the ministry would make sure that enough land is available this year to build 10 million affordable homes.

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